Valeant Pharmaceuticals, the most widely held name in U.S. CLOs, announced last week it was cutting its revenue forecast and that a delay in filing its annual report put the company at risk of defaulting on its debt. In response, Valeant’s shares plunged by more than 50%. The company’s loans ended Tuesday with a weighted average bid of 94. While it is the most widely held name in U.S. CLOs, with holdings totaling US$3.8bn, it still represents only 0.9% of CLO assets, based on the most recent data available in LPC Collateral. 
Valeant is held by 754 U.S. CLOs, with 53% of deals having sub-1% exposure. On the other hand, 7% of CLOs have exposure in the 2-3% range, with 1% of deals having exposure above 3% of assets. In terms of trading activity, since the middle of last year CLOs have bought US$625m of Valeant (at a weighted average price of 96.93) and sold US$541m (at an average price of 93.77). After Valeant, the most widely held names in U.S. CLOs are First Data Corp. (US$3.4bn), Asurion Corp. (US$3.1bn), and Albertson (US$2.8bn.).
Register now! TR LPC’s 4th Annual Middle Market Loans Conference on April 27, 2016.
Contact: Colm Doherty
colm.doherty@thomsonreuters.com
Latest news
Lack of new issues clouds CLO market
It’s been boom time in the leveraged loan market but now that market has eased off, what are the implications…
Multiples on PE buyouts
This quarter marks our integration of SPI by StepStone as the primary source for US buyout valuation metrics for the PE Breakdown.
US Leveraged Loan Issuance Slows to $76.5b in July
The US leveraged loan market has continued to slow from the May level of $104.7b, with approximately $76.5b priced in…